Effect of Mergers and Acquisitions on Service Delivery at Cfc Stanbic Bank Kenya Limited

Abstract

Mergers and Acquisitions have taken charge in creating a market niche by making top notch service delivery achievable through the synergy that is achieved after a M & A takes place. The Kenyan banking sector has seen many large financial institutions go through mergers and acquisitions at a heighted pace so as to achieve great levels of synergy. M & As are alluded to be resultant from the dynamic operating environment. The study sought to establish the Effect of Mergers and Acquisitions on Service Delivery at CFC Stanbic Bank Kenya Limited. A cross –sectional survey was done by use of correlation, descriptive and regression analysis as it was the most applicable to study customers perception on the quality of service delivery by focusing on the SERVQUAL model which was based on; Tangibility, Reliability, Responsiveness and Convenience. The study concluded that tangibility, responsiveness, reliability and convenience had been applied after the merger and that responsiveness was the most preferred service delivery dimension by customers and the tangibility dimension had been applied the least. Further the study concluded that tangibility, reliability, responsiveness and convenience are all related to each other and contribute to the overall success of service delivery and thus none of them can be ignored. From the study, findings indicate that M & A’s had an impressive positive effect on overall service delivery experience customers had after the merger. Positive relations of the variations in customer’s satisfaction in service delivery are explained by variations in the four attributes. As the results indicate; mergers and acquisitions offered competitive advantage which enabled the bank to grow in ten folds. This in turn has positively contributed to increase of efficiency and reduces the amount of time taken to deliver a service through improvement in service delivery.The study recommends that the management of CFC Stanbic Bank Kenya Limited should be keen to maintain set standards in service delivery and aggressively implement other service delivery qualities to propel the company to greater heights in terms of delivering quality to its customers. Similar study should be carried out in different banks that have gone through M & A’s so as to compare the findings